France's 74Software H1 revenue rises
France's 74Software H1 revenue rises
Overview
France enterprise software group's H1 revenue rose 8.6% organically
Profit on operating activities climbed 34.8% year-on-year, margin reached 15.2%
Company raised full-year revenue growth and margin guidance after strong H1 performance
Outlook
74Software raises FY 2026 organic revenue growth guidance to 4% to 6%
Company now sees FY 2026 margin on operating activities at 16% to 18%
Company maintains FY 2026 unlevered free cash flow guidance at around 10% of revenue
Result Drivers
SUBSCRIPTION TRANSITION - Shift from maintenance to subscription revenue drove recurring revenue growth and improved revenue predictability
DISCIPLINED EXECUTION - Margin expansion and profitability gains supported by disciplined cost and resource management and a more favorable product mix
Company press release: ID:nGNEblBRbd
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| EUR 367 mln |
|
H1 Operating Profit |
| EUR 43.90 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for 74Software SA is €46.00, about 29.9% above its July 22 closing price of €35.40
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 13 three months ago
Reuters Recommended Reads
July 21 - France's Sidetrade H1 revenue rises 19% on AI product growth
July 23 - Dassault Systèmes confirms 2026 outlook, bets on AI with $1.8 bln ArisGlobal deal
July 22 - Temenos revenue tops estimates, reiterates outlook
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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France's 74Software H1 revenue rises
Brief: 74Software Is Raising Its Full-Year Revenue Growth And Margin Guidance